STOCKHOLM, Sweden, June 11, 2003 (PRIMEZONE) -- Modern Times Group MTG AB (Nasdaq:MTGNY), the international media group, today announced that it has written to Sweden's Ministry of Culture, offering to take over TV4's national commercial TV broadcasting license in the Swedish terrestrial analogue network. This follows the Swedish government's enquiry into the annual concession fee that TV4 has to pay for its licence, and could generate over SEK 1 billion for the Swedish government.
MTG is prepared to accept the current concession agreement with all its existing terms and conditions.
MTG's proposal comes after a special Government enquiry into the terms of the current agreement, which has recommended a 20% reduction in the license fee per annum over the next five years.
MTG's letter to the Swedish Minister of Culture, Marita Ulvskog, stated: "Modern Times Group MTG AB considers the current conditions of the licence -- including the original concession fee - to be favourable to the extent that the company would be prepared to take up the license to broadcast commercial TV in the terrestrial network, without any changes to the existing agreement. The reason for introducing a license fee together with the terrestrial license was that the TV broadcaster controlling the terrestrial commercial license has a significant competitive advantage in terms of penetration over the channels distributed via satellite."
Hans-Holger Albrecht, President and CEO of MTG, commented: "The terms and conditions of the concession are fair and the competitive advantage for the licence holder is considerable for the foreseeable future, so we would be more than happy to take over the license and all of its existing commitments."
For further information, please visit www.mtg.se, email info@mtg.se, or contact:
Hans-Holger Albrecht, President & CEO tel: +46 (0) 8 562 000 50 Matthew Hooper, Investor & Press Enquiries tel: +44 (0) 20 7321 5010
Modern Times Group MTG AB has five business areas: Viasat Broadcasting (free-to-air and pay-TV broadcasting operations in nine countries and teletext operations in four countries), Radio (seven national networks or local stations in five countries), TV-Shop (home shopping and logistics), SDI Media (subtitling and dubbing services), and Modern Studios (content production and distribution).
Modern Times Group MTG AB class A and B shares are listed on the Stockholmsborsen O-list (symbols: MTGA and MTGB) and ADRs are listed on the Nasdaq National Market (symbol: MTGNY).
This press release contains certain "forward-looking statements" with respect to our expectations and plans, strategy, management's objectives, future performance, costs, revenues, earnings and other trend information. It is important to note that our actual results in the future could differ materially from those anticipated in forward- looking statements depending on various important factors. Please refer to the documents we have filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including our most recent annual report on Form 20-F, for a discussion of certain of these factors.
All forward-looking statements in this press release are based on information available to us on the date hereof. All written or oral forward-looking statements attributable to Modern Times Group, any Modern Times Group members or persons acting on our behalf are expressly qualified in their entirety by the factors referred to above. We do not intend to update these forward-looking statements.
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